Cryptocurrency Bourses Allegedly Affected By Regulatory Activities, As Per Federal Reserve Bank Paper

The Federal Reserve Bank of Dallas has recently published a paper presenting how digital asset bourses are affected by regulatory arrangements. Furthermore, the research ascertains whether the authorities have some purview to make virtual asset regulation effective.

Recently, the Federal Reserve Bank of Dallas published a report labelled “Cryptocurrency Market Reactions to Regulatory News.” It is to be noted that the report is an updated version of a paper by the same authors earlier published by the Bank of International Settlements.

The paper investigates the influence of regulatory actions on digital currency markets. Notably, the researchers found that the markets respond very strongly to news events concerning the legal status of virtual currencies. As per the report, news of whether cryptocurrencies are securities, general injunctions on the use of digital assets, whether crypto will not be treated as a currency, or firm Anti Money Laundering measures have strong contrary ramifications. News indicating likely legal frameworks for cryptocurrencies or ICO accords with strong market profits.

The researchers concluded that at the present stage, establishments around the world do have some possibility to make regulation efficacious.